Wednesday, February 10, 2016

Everything is fixed. Go back to your regularly scheduled program.

For the second time in 2 weeks the market stared straight into the abyss and bounced.  The bounce began on Monday when a determined set of programs bought stocks in consistent enough intervals to drag in other programs that use plain vanilla if/then strategies.

Overnight stocks soared on ........ insert random idea here -
Trump victory?
Clinton loss?
The German government promising to save Deutsche Bank?

However, the most likely cause is the one the markets can't seem to live without - Fed Chair Janet Yellen is speaking today.  So, the expectation is that she will utter something even beyond what is taken for granted now, the prospect of negative interest rates or QE4, but perhaps preemptively taking the next Fed rate hike off the table.

At this point the Fed's credibility is the asset that is in the most danger so it will be interesting to see how the market reacts, but right now they want to make money on the buy side so it's a green day for everyone (except Solarcity - YIKES!).

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3 comments:

Robert F. Crocker said...

Really appreciate this wonderful post that you have provided for us.Great site and a great topic as well i really get amazed to read this. Its really good. holistic financial planning

James Adward CEO said...

Great advice about stock market and it has been finally proved that the day was green for everyone. So as I saw that everyone just started to do regular scheduled program and may be it was the magic of this small news. So great work at the end and hoping to see more like this. wealth management

asaduzzaman sumon said...

Your advice is really very good. It is help the people who want to invest international market with fibogroup . Thank you so much for your good advice.